BOROUGH PROTEST

Hauraki Plains Gazette, Volume 52, Issue 3256, 28 April 1943, Page 4

BOROUGH PROTEST

UPKEEP OF HOSPITALS TAXATION NOT EQUITABLE BURDEN ON THE RATEPAYERS Pointing out that the hospital taxation paid by property holders in the Paeroa Borough had increased by more than 200 per cent, since 1932-33 when the council had been levied for some £426 the Mayor, Mr Edwin Edwards voiced an emphatic protest at Thursday night’s meeting of the Paeroa Borough Council when the acting-town clerk, Mr A. A. Jenkinson, advised the meeting that in the prestnt year, 1943-44, the borough would be called upon by the Thames Hospital Board to find some £1283.

The Mayor stated that in his opinion it was not just that property holders should be forced to meet this continual increase which was due to the added calls being made on the hospital due to Social -Security. “In addition to th present levy of £1283 I am informed that the Thames Hospital Board will shortly be faced with a big capital expenditure as the hospital at Thames will soon have to be reconstructed. This will be a very big drain on property owners,” explained, the Mayor. J Property Owners ’taxed

Continuing, the Mayor said he considered a protest should, be made by the council against this charge being levied against property owners. All agree that hospitals were very necessary but- most felt there should be a

more equitable means of financing such establishments. The Mayor pointed out that with the present stabilisation of prices property owners could not pass the increase levy on to the general public, the principal users of the hospital. Owners of houses also were prevented from passing the increased cost on to the occupiers because the Fair Rents Act prevented rents being raised.

It was time the council entered an emphatic protest to the Government against the continued rise in the levy for hospital, maintenance—the increase this year being in the vicinity of 14 per cent. The stage had now been reached when the burden had become too heavy for ratepayers and it was time the cost was more equitably spread over all the people. Board Not Criticised In conclusion the Mayor made it plain he was not criticising the administration of the Thames Hospital Board which he considered was both efficient and economical but was objecting to the system by which hospitals were financed. The Mayor then movsd that the council record hn emphatic protest against a further increase of more than 14 per cent, in the hospital valuation rate and inform the Government that it considers such an increase indicates failure to hold costs as promised by the Prime Minister under the scheme for economic stabilisation'and that this resolution is not a criticism of the Thames Hospital Board, but a protest against a policy which results in an ever-in-creasing charge on ratepayers.” Mr F. Sparks seconded the resolution and in endorsing the Mayor’s remarks commented that costs were getting too high for property owners to carry by themselves. Mr Webb Opposes Protest

Mr C. G. Webb said he did not agree with the resolution, pointing out that no alternative means of financing had been suggested. He did not consider it right to register a protest without an alternative scheme was mooted. To say ratepayers were being unfairly penalised had some* merit, added Mr Webb, but he claimed all Contributed because the Government subsidised hospitals from the Social Security fuqg and all contributed to that. It would not be right to sug-

gest that a man on a wage of £5 per week should contribute equally with the property owner ofk say a block of buildings-. As it was at present the big man who could afford: to pay more did so while the small wage earner paid less, contended Mr Webb.

Referring to the farmer Air Webb side he had heard too much already of the “poor old farmer” who was always claiming he was getting the' bad end of the stick. Everybody’s costs are going up and the farmer is not the only one affected. Farmer Not Considered In conclusion he said that £lOO more which was the increase the borough had to pay this l year was not much to ask the borough of Paeroa to find. Mr D. G. McMillan said to him it was quite evident that Mr Webb was. not giving the farmer the consideration he was entitled to. Mr Webb interrupted to s?.y hie remarks were made in opposition to.the word farmer being brought into the resolution before the borough, the Mayor having first of all mentioned “farmers’ costs” in his resolution. Air McMillan asked Mr Webb if he thought a man drawing £lO per week was not just as able to help meet hospital costs as the farmer. Mr Webb: He pays through rent. Plains Heavily Taxed

Mr McMillan pointed out that the farmers, on the Hauraki Plains paid a tremendous figure for hospital costs compared with the amount the Paeroa borough was asked to find. The populations were about equal so actually both used the hospital approximately equally and should pay for the cost of the institution equally. The Government had promised free hospital treatment but this was a myth, continued Mr McMillan, adding that he was fully in sympathy with the resolution.

He pointed out that the wage earner paid Social Security only while the farmer not only paid Social Security but was rated as well on the capital value of his land. The solution of the problem was an increase in the subsidy paid by the Government to hospital boards and then all would contribute equally according to their earnings. Pay In Proportion To Earnings The Mayor in reply to Mr Webb said that he considered each man should pay in the same proportion to his earnings and then the big property owner would pay in keeping with his income and the small wage earner would pay merely on his income. All then would assist in proportion to their ability to pay. Referring to Mr Webb’s criticism of no solution -being put forward, Mr Edwards said in his opinion only experts could work out the detail of a new system and he did not set himself up as an expert in taxtion matters.

“It is quite in order v test and ask the Government to investigate the question with the experts they have in their employ,” concluded the Mayor. The resolution was then put to the meeting and carried Mr Webb being the only dissentient voice. He nrirti that his vote be recorded against the resolution.